The number of technol- ogy start-ups and product offerings in the mortgage
banking space has grown at an
exponential rate in recent years.
Mortgage banking, for years the
laggard of the financial services
industry, is now ripe for the rapid
innovation and continuous pro-
cess optimization we’ve seen in the broader industry.
While the mortgage sector has made some strides
in reengineering workflows it has lagged in developing the best approaches to selecting, purchasing,
and implementing new technologies to support and
enhance those workflows. Every mortgage company
needs to have a designated person who guides the
organization through these processes; otherwise, you
risk overinvestment in technology and the high likelihood that the technology won’t support the organization’s needs.
Technology is of no value unless it solves a problem or facilitates taking advantage of a future opportunity (such as a strategy to adapt to changing
customer behavior in buying a house). Too often, we
are seduced into adopting the “latest and greatest”
technology without fully understanding the return on
investment to the company. Or, a technology solution
solves an existing problem but does not address the
ongoing stability of the company or the company’s expansion plans, and that results in technology becoming
the “money pit” of the organization requiring constant
investment to respond to the changing needs of the
company and the industry.
Before moving forward with new technology, A
CEO must know how the bottom line will be affected.
One needs to ask questions including: will this product
or service enhance the performance of the organization, what are the costs of implementation, training,
support, and future upgrades? Don’t get me wrong, I
believe that technology platforms and products should
be and will always be evolving and will result in additional costs to an organization. The question is how to
plan and anticipate those costs and understand how
that translates into increased sales or reduced operational costs.
So, how do you get started in making the prudent
decisions regarding the selection of technologies that
support your business objectives? Let me first ask
By AR Smith